BHUBANESWAR: Odisha has excelled in fiscal performances as its outstanding liabilities were the lowest among all states and the state’s non-tax revenue (SONTR) as a proportion of total revenue was the highest, the report on state finances released by Reserve Bank of India (RBI) has revealed.
Even as the share of outstanding market loans in total debt has been on an upward path in the post-Covid period, the debt-GDP ratio has declined considerably in the state and its outstanding liabilities stood at 13.9 per cent of gross state domestic product (GSDP). The proportion of SONTR of the total revenue was the highest 27.8 per cent.
SONTR consists of six components - general services, social services, economic services, fiscal services, interest receipts and dividends and profits. State revenue from economic services is mainly generated from industries, power, petroleum, major and minor irrigation projects and forestry and wildlife. While revenues from industries have increased significantly over the years, the shares of forestry and wildlife have declined.
“There is a wide variation in own non-tax revenue collection across states. Mineral-rich states like Odisha, Chhattisgarh, and Jharkhand have a significantly higher share of non-tax revenue than other states, with over 60 per cent of their non-tax revenue coming from mining royalties and premium paid by mines,” the report stated.
However, the share of the state’s tax revenue of the total revenue has increased marginally from 46.8 per cent during the pre-Covid period in 2015-16 to 53.5 per cent during the post-Covid period. While the expenditure rose from 3.1 per cent in 2006-07 to 6.9 per cent of the aggregate spending in 2023-24 on medical and public health and Rs 4,630 crore to Rs 36,591 crore on wages and salaries, it stood at 12 per cent in education.
The state’s expenditure on research and development has gone up from 125 per cent in 2020-21 to 500 per cent in 2023-24 (budget estimate) in education, 25.7 per cent to 105.8 per cent in medical, health, family welfare and sanitation, 24.6 per cent to 199.2 per cent in agricultural research, 2.2 per cent to 22.7 per cent in industrial research, 15.6 per cent to 17.9 per cent in environmental research, 38.8 per cent to 81 per cent in infrastructure research and 156 per cent to 289 per cent in others, the report added.